Bush Leading in IEM

August 31, 2004 | Investor's Business Daily

President Bush's stock is rising in the markets. Literally. On the smaller Iowa Electronic Markets, a market based at the Tipple School of Business at the University of Iowa, Bush's contract was quoted at $54.30 on Tuesday, compared with $46.30 for Kerry's. Another IEM contract that follows the popular vote showed Bush with a $51.33 last-trade price. Kerry's was quoted at $49.90. The IEM began as a teaching project in 1988. The market, which receives orders online, still limits orders to $500. Iowa Markets also works with the National Science Foundation and has a nonprofit tax status. As a result, trading has been limited, less than $100,000 in trades for the two presidential election contracts. "We use it as a classroom and for research," said TOM RIETZ, an associate professor of finance at the University of Iowa. "We're designed to be accurate." The story also appeared in AFX NEWS LIMITED.